As traders monitored rising Treasury yields, the price of stock futures on Tuesday barely changed.
While Nasdaq 100 futures lost 0.1%, those linked to the S&P 500 index increased by less than 0.1%. The futures of the Dow Jones Industrial Average increased by 22 points, or 0.1%.
A high from October 2007 was hit in the previous session, and the 10-year Treasury yield was trading at 4.7%, barely below that level. The benchmark yield has shot up over the past month as traders evaluate the probability of continued Federal Reserve tightening.
According to Vital Knowledge’s Adam Crisafulli, “Stocks are making an effort to recover, but bulls remain chastened and cautious, with little appetite to chase on the upside.” To wait until the lift is on more solid ground before partaking, buyers seem willing to miss the next 2-4% of an increase at this time.
Wall Street is coming off a mixed afternoon after Washington politicians avoided a government shutdown over the weekend by reaching a short-term compromise. The S&P 500 ended slightly higher while the 30-stock Dow closed 0.2% lower. For the fourth straight day, the Nasdaq Composite increased.
Source (CNBC)
